Overview of Offer to Lease
What is this document?
An Offer to Lease is a binding document that outlines and confirms certain terms and conditions before the parties enter into a formal Commercial Lease.
When would I use this document?
This document is used when a landlord wishes to secure a tenant prior to negotiating and entering into the formal Commercial Lease. It is often a standard form provided by a landlord to a prospective tenant. However, tenants shopping for a lease can also approach a landlord with an Offer to Lease.
Who signs this Agreement?
An Offer to Lease is signed by the landlord and the prospective tenant of the “leased premises”.
More details about this document
Although an Offer to Lease is entered into prior to and is shorter than a formal Commercial Lease, the terms and conditions found in both documents can be similar. An Offer to Lease provides the Landlord and the Tenant with an opportunity to negotiate terms before formalizing the leasing process.
An Offer to Lease will outline conditions that must be fulfilled and information that must be provided by the tenant before the parties enter into a Commercial Lease. Conditions can include: receiving tenant’s financial information; Tenant’s insurance information; or tenant’s proof of purpose for premises.
The parties will also determine issues, such as amount for rent; maintenance responsibilities; and amount of security deposit before entering into a Commercial Lease.
What are the core elements of this document?
The core elements of an Offer to Lease include: Premises Location; Term of Lease; Rent; Security Deposit; and Deadline to Respond to Offer.
Some additional clauses may include: Landlord’s Work; Tenant’s Work; Parking and Additional Rent.
Commercial Lease – lease between a landlord and tenant for a commercial property.
Sublease – an agreement between a tenant, a subtenant and for commercial leases, the landlord, subletting the leased premises to a subtenant. The original tenant is responsible to the landlord and the subtenant is responsible to the original tenant for the performance of the lease.
Consent to Assignment of Lease and Amendment to Lease – Agreement requiring consent from the landlord to assign the lease to a different tenant, and to amend the lease accordingly.
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